Modum is swapping a token it issued in 2017's coin boom for a share. Chairman Marc Degen tells finews.com why the blockchain firm wants to move away from tokens as it seeks funding for its expansion.
Marc Degen, you issued tokens two years ago, which you now want to swap into shares. Have you lost faith in tokens?
The catalyst is that Modum has reached the point where we are ready to scale up to reach our targets. We’re going to need significantly more capital to do so over the next 24 months. We want to do that from a position of strength.
What targets are you aiming for?
We measure ourselves on number of active shipments that our technology, which focuses on the pharmaceutical industry, is monitoring. A pilot project with a big drug firm shows that there is huge potential to streamline supply chains, warehouse management, and transport through blockchain technology. We aim for more than 10,000 monthly shipments on our technology this year.
But swapping your tokens for shares won’t get you more funds.
No, but going into fundraising with a token will prompt some questions, and effectively mean a discount on financing. We would prefer a plain equity setting so that we can get traditional funding, without factoring in a discount.
Are there any other reasons for proposing the swap?
The market for asset tokens like ours has proven somewhat arbitrary. Binance and other exchanges delisted tokens like ours. We would like a long-term solution for our securities.
What happens now?
We’re suggesting a swap of nine tokens for one share. One share equals one vote. Our token-holders will vote on whether they want to go through with this conversion.
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